- April 26, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Seeking Advice on Purchasing a New Car
Hello everyone, I am currently seeking advice on purchasing a new car. I am looking for a vehicle that is not only fun to drive but also visually appealing, as I truly enjoy the driving experience and am feeling a bit uninspired by my current Toyota Aqua. While the Aqua has served me well in terms of fuel efficiency, I have recently started walking to work, reducing the amount of time I spend behind the wheel. However, when I do have the opportunity to drive, I want to truly enjoy it, and I have had my eye on owning a Toyota 86 for quite some time.
I am considering purchasing a pre-owned model, preferably from around 2012, as they are priced between 17-23k on platforms like Trademe. One important factor to consider is that I do not have a garage to store the vehicle, so I will need to think about how it will fare in outdoor conditions. It will be parked in a secure area, but exposure to the elements is still a concern. Factoring in the expected sale price of my Toyota Aqua (around $9k), I will need to come up with approximately 10-12k from my savings and investments to make the purchase.
If anyone has been in a similar situation and can offer any insights or advice, I would greatly appreciate it. I want to ensure that I am making a well-informed decision rather than acting impulsively.
## Financial and Living Situation Overview
To provide context, here is a breakdown of my financial and living situation:
– I am a 25-year-old Mechanical Engineer with an annual income of 85k
– I currently reside in Auckland
– I have 27k remaining on my student loan
– I have 42k invested
– My Kiwisaver balance is 14k
– I maintain a 2k emergency fund, although I acknowledge that this amount is insufficient and am working on increasing it gradually
– I am currently saving $450 per week
Any thoughts or recommendations would be valuable to me. Thank you in advance for your insights!
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****** just grabbed a
Pf will tell you that it’s a bad idea.
But you’re not asking to finance it and you’ve expressed you’re willing to save for it.
Fuel efficiency isn’t really a concern here, as you commute via the shoelace express. An 86 doesn’t use more than a minivan, so it’s really not that bad.
Given your lack of garage, I’d say look for one that’s already got munted paint. You’ll get it for cheaper and it’ll hurt less when the weather takes its toll.
I’ve owned several performance cars via financing when I was younger and I’ve only just recovered from it. As long as you avoid the finance trap, I think you should go for it.
Insurance and fuel costs be damned! It’s not like you’re buying a v8 falcodore..
I had this same decision albeit 2016 and I bought a 2013 toyota 86. I’m going to offer perspective from a car guy. If you don’t scratch the itch now, you are never going to.
Life will get in the way and a 2 door car won’t be practical long term. The benefit you have is the toyota 86 is a reliable fun car that won’t be depreciating quickly now. It allows you to goto car meets etc and strike conversations with likeminded people.
If you were going to buy a fun car that is sensible, an 86 can’t be a bad choice.
Lmk if any questions.
As a Mechanical Engineer, it is kind of mandatory to have some sort of “enthusiast” car. GTI Golf / some form of Supra are all good options. Having a Toyota 86 will likely lead to some good payrises – your boss will respect you more as a “car guy”, but also a “sensible engineering choice” – a visible nod to Kaizen. It will literally pay for itself. Go have at it. Source: work in tech, have a lot of interactions with Mech Es, all of whom have either enthusiast road cars or 4WDs under continuous modification. Edit – bonus points if you have some creepy Waifu stickers in the footwell. Not stereotyping Toyota enthusiasts, but….. it does seem to be a bit of a pattern….
What’s the insurance difference on the Aqua vs 86?
Get the 86, enjoy life. I doubt you’d get 9k on the Aqua as insurers are positioning themselves to not insure them soon due to theft risks, or at least excluding theft cover, lowering their value. 86’s somewhat hold their value as a rwd manual sports car
I mean, you only live once, but you also don’t have $10-12k liquid, so you’d have to sell shares, which isn’t a great investment strategy. I guess you’ve got to work out your priorities going forward. Like, I’d love to buy a Kia Stinger, but I’m not going to do it because it’d be the same situation for me – liquidating investments.
I had a Toyota 86 for like 6 years, awesome car. A 2012 model is now 12 years old though and they’re not holding value anymore, so it’s worth thinking about that. You’ll likely have quite a bit in maintenance costs to deal with as time goes on, so factor that in as well.
Do it, youre young!
Through my 20s I was changing cars every few months and had so many fun cars, have finally got an RS6 now!
I had an 86 and its a great car, fun on a track too.
As aonther poster said, consider Subaru BRZ too as they are the same car.
I did this with the AE86, fond memories with me forever. Avoid finance.
Buy the car you enjoy driving, it makes things overall better, but make sure you have spent a proper amount of time trying them first. If you assumeit will be right without having a few hours driving it and really thought about what you want it to do, you may be frustrated that it isn’t what you thought you were getting. However as others have pointed out, it’s a 12 year old Subaru (Ignore the Toyota badge, it is built by Subaru and is a Subaru engine) so maintenance and longevity are things to be considered.
How far is your commute? How much extra in fuel will it cost? Could you offset the added fuel cost by taking public transit/escooter/ebike?
My 10km each way commute costs me $6.52 in my diesel suv, $2 in my ev, and $0.03 on my ebike for reference.
People spend more money on stuff that is equally or more dumb/fun. You’ve correctly identified that’s its a splurge, like an overseas holiday or whatever (that’s a good comparison actually, 12k would be a good trip for a young single person).
All that remains is deciding if the happiness is worth the work required to save that 12k.
I value time more than anything else, so when I make this comparison I evaluate how long it would take me to save 12k at my savings rate, and then consider if the thing is worth as much of my life as I will spend to aquire it after my needs are met.
The whole point of life is to enjoy it, and it appears you are willing to save towards the goal then why not.
There’s no harm working towards your dreams, and tbh it’s not like you’re trying to buy something new for 50K+ when you can’t afford it.
One thing to bare in mind is the running and maintenance costs, an Aqua is quite an efficient car, a Toyota 86 is a 2ltr boxer engine. Not the worst, but not known for fuel efficiency. Also, have you compared insurance quotes/prices?
I daily a sports car, and really enjoy it, but there are definitely compromises
This isn’t really a financial decision and more of an emotional one. It’s never going to be a good purely financial decision.
Calculate costs across lifetime and determine if it’s worth it to you; added fuel, insurance, depreciation, missing out on interest from investments, etc
Personally I own a Hilux and Silvia as fun vehicles, at the detriment of my financial goals, and don’t regret it.
From a car guy, “do it”. It’s a purchase for you and your interest.
You can afford it, it’s just if you want to.
What are your financial goals? Most people don’t save and invest solely to build wealth, they do it so they can use their money for the things they really value. If owning this car is something you want, and you can afford it up front, then go for it. There’s not much point having money in the bank if you never spend it on the things that will make you happy.
Buy a Toyota 86, market is down on them hugely. Good deals
I was in your shoes once. I worked my ass off, saved hard for 2 years and imported a Lexus ISF from Japan. Upgraded from a 1990 Nissan Pulsar to a 400hp V8 beast. Absolutely loving it, only downside is the way it gobbles fuel driving around town. On the open road its barely idling 1400rpm @100k
Do it, they they the most ‘fun for your buck’ even compared to an impreza or MX5 with some cheap mods.
They are not too thirsty compared to the turbo’s around and they use pretty cheap tires compared to other performance cars.
Also much cheaper to repair than european fun cars like Golf GTI.
I’ve always been a big advocate of saving and buying cars with cash to temper your ambitions.
Just do it, you’re earning plenty,have some fun
Yes, you don’t want to be driving that Toyota 86 when you have the money at 60 or 80 years old.
Buy it now.
I did something similar when I was in a similar situation, financially probably not the best but in terms of enjoyment 100% worth it for me.
Bought a manual Nissan 350gt coupe in 2017 – ~$15k – still have it now 7 years later, no regrets and don’t plan on selling it. I still enjoy driving it every time.
As a 40 year old who wasted money on cars in my late teens and early 20s I say keep the Aqua.
You will benefit a lot more in the long run. You have appreciating investments, don’t waste them on something that will lose value. Any enjoyment you get from a new car will be fleeting. In a few months it will feel exactly the same as the aqua.
Buy the GT86 but don’t buy one with mods. Service history is important, and red is pretty but fades the worst
Go for it. Its the process you need to go through so see whether a fun car really give you the joy of life. You can always sell if you decided the fun still wear off like any object.
Make sure you put a wax or sealant on it if you’re leaving it outside so the paint doesn’t get hammered.
You have good income, and that’s really not an expensive car when you consider what some people get financing for these days. Go for it!
If you would go with an auto one you can get them for those cheap prices you’ve stated. The manual ones iirc and a decent bit more
My advice having a few project cars, and flipped a few. I would plan the whole ownership of the 86 before you do anything.
Make a realistic outline of what it looks like owning the aqua to the end of its service life. Selling for scrap/$1000 barely operable car.
Compare that to selling it now, buying the 86 and using it to the same amount of kms?
Just compare the ownership cost difference, loss difference when selling for scrap, etc.
It will probably cost more. But you can make a plan to sell cars before they drive their last and final meter.
Consider selling the aqua slightly before a landmark km, eg 300k. Replace it with newer aqua and drive until the same kms.
Compare to owning the 86 in similar manner.
This should give you a good idea of the cost, of different vehicles and purchase strategies. It’s hard to decide what you can personally afford. Harder still to determine what’s worth it.
Drove a mates one brought one a month later.
From a Financial point of view it was a DUMB idea I wasn’t in the position to do it.
No garage, I would be buying a mechanically sound one that has an average cosmetic condition. Will this car be parked on your property or the street?
This is coming from someone that brought with a fair paint job and has ruined the paint from daily driving and wear and tear.
I have done 50000km in 15months and love the car drive it every day.
If you wish to have a fun car be prepared for maintenance costs if the car is driven like a sports car this will accelerate the wear and tear.
This is the most expensive car I’ve had to insure, I’ve owned cars with a lot more power with a younger appeal the price of insurance is high. Any modifications made be mindful how this will affect your insurance.
Just my 2 cents
Just do it. Being a ‘weekend’ car it’ll be more special when you do drive it.
It should be quite simple and reliable (I haven’t owned a FA engine Subaru, but lots of EJ powered ones and they’re simple as), so it shouldn’t bankrupt you if it were to break.
You seem to be saving well, so I would save towards it. It’s not an unreasonable amount to spend.
I would go for it. Was in a similar situation to yours and was umming and arring for months. Very glad I did. Insurance costs will go up considerably though so just watch out for that. Shop around, people recommend cove but they don’t cover you if you have a few speeding tickets so just be aware of that. I ended up raising my excess to $1000 to make my premium like 1500 for 25k insurance value.
Yeah, why not, you only live once, you’ve done well so far, got your education sorted, so treat yourself
Is the enjoyment benefit you would get from the car worth 10-12k, if yes then buy it, if no then don’t. You can afford to safely buy it with your finances so just get it if you truly want it. Just cause it’s not financially a good idea doesn’t mean it’s not a good idea.
10-12K on a new car is all good. You’re sensible with your income and you’re still young. If you were 30s and looking to get a home then I wouldn’t advise it.
However, may I suggest you skip the car and go back packing instead? You can squeeze 4 x one month long back packing trips with 12K and I guarantee you’ll look back and be glad you chose that option instead.
The dopamine rush from buying a new car quickly fades but the perspectives and experiences you gain backpacking will last forever 🙂
There’s no harm as long as you realize you’re spending it as a luxury expense not a transport expense. Some people buy fancy handbags, some people travel internationally. Perhaps you want a fancy car.
As long as it’s in your budget and you keep total luxury expenses to an affordable amount it’s fine.
Get a 2012-14 legacy with eyesight for 10k. Awesome car, safest in its class.
My personal way of doing things when I want to make a big fun purchase that isn’t a necessity but something that I love, is to make myself work for it by achieving another financial goal first and buying the thing as a reward.
E.g right how I want to by a $5000 audio setup system for my vinyl records. I am allowed to buy this once my house deposit savings reach $100k. I have $20k to go now but it is creeping closer!
Applied to your example, for instance you might decide to clear your student loan debt firat and buy your car as reward for becoming debt free.
I’d definitely consider just doing it. The world won’t be getting cheaper for this kind of thing, or more accepting of ICE sports cars. The 86 should last a good while as others have made valid points supporting this
When gas continues to go up, at least you have fuel economy on your side, and might be able to run on 91 since it’s an N/A car? Unsure on that but hey, if you really wanted to nickel and dime it, you might get away with it
I’d look towards any model year except the first. Don’t get the first model year of a car – try have others suffer with the first year teething issues lol
I’d definitely do handling mods as it will make the car feel like it would be faster around town and at Lower speeds, which since the car isn’t a HP machine, is greatly in your favor. Exhaust mods to hear it a bit more, but please try consider others when choosing an exhaust 😂
I own a 2008 Legacy GT and after doing suspension mods it’s a blast to rip around town as it holds well through corners, giving the illusion of fast without actually going fast. It’s all about the feel and perception of speed!
Hey!
I drove 86 for a little while, and while I think it is a beautiful looking car, I was over it in 2 weeks…
I know you might as well love your dream, but please have a close look at what this car will do for you because oh god, I would trade it for a hatch or a reasonable suv any day 🤣
I did drive 10th anniversary edition GR version too. Only 10 ever brought to New Zealand.
Anything that gets you out of a Toyota Aqua is worth it.
You’re 25 years old man, the 86 hardly deprecate, if you don’t buy a fun car now? When will you?
I did the same, I’m 28 and bought a 35k fun car to drive for a few years before the house/kids/life kick in, I expect to lose around 5-8k on it over 3-4 years, for the enjoyment I’m getting it’s absolutely worth it.
You work hard, you’ve made great savings and $2k rainy day fund is more than 80% of NZ has for anything.
Buy the car, who cares if it’s on finance or not (finance has the added bonus of boosting your credit rating, great for when you want to buy a house).
Saving lots of money with zero credit will make any big life financial purchases hard.
I make sure I constantly have a loan I’m paying off of some description, always have and use a credit card for daily purchases (pay it off each month no interest, but great boost to your credit rating).
I have 1 daily driver (v8 TDI) and 4 other cars because I love cars.
I have a great rainy day fund, I have investments and kiwisaver and I’m on $52k p/a
Bottom line you ain’t taking any of that money to the grave, your well on the way for a comfortable retirement.
Buy a car you love and enjoy it.